Nilesh Ramesh Jain
After logging gains for three consecutive sessions, the Indian market witnessed profit-booking on March 27 and Nifty gave away all the gains after facing stiff resistance at 9,000-mark.
Nifty is making higher top higher bottom on intraday charts. As long as the index holds above 8,000, we can expect the positive momentum to continue towards 9,350 than 9,500.
However, the broader structure still looks weak and one should refrain from creating any aggressive long positions.
We have already seen a strong pullback from lower levels, so risk and reward are not in favour of the longs. Although, we are expecting pullback which is unlikely to sustain at higher levels and we may see another leg on the downside once this pullback gets over.
The immediate support is now placed at 8,300 and below that, the index may again slip towards 8,000 levels.
The volatility index India VIX fell for the third consecutive session and it ended near 71 levels; now it has to fall below 50 levels to give comfort to the bulls.
Bank Nifty underperformed Nifty in the previous week and remained under pressure. The immediate resistance is placed at 22,500 levels. Immediate support is pegged at 18,600 and below that, it may drift to 17,500 levels.
Here are three stock recommendations for the next 3-4 weeks:
Tata Consultancy Services (TCS) | Buy | LTP: 1,850 | Target price: Rs 1,900-1,950 | Stop loss: Rs 1,770 | Upside: 5%
The stock has provided a breakout from its symmetrical triangle pattern on the intraday chart.
The MACD has also provided fresh buy crossover on the daily chart. Now, it seems like the stock may attempt to fill the gap which is placed at Rs 1,900 levels in the short-term.
Coal India | Buy | LTP: 131.15 | Target price: Rs 139 | Stop loss: Rs 125 | Upside: 6%
The stock seems to be forming a base and is on the verge of a breakout from its rectangle pattern on the intraday chart which is placed at Rs 134 levels.
Above that, a sharp move could be seen towards Rs 144 levels.
The momentum indicator RSI has also reversed from the oversold territory which indicates positive momentum in the stock.
TVS Motor Company | Sell | LTP: Rs 304 | Target price: Rs 285 | Stop loss: Rs 316 | Downside: 6%
The stock has provided breakdown from a rounding top pattern and also making lower high and lower low formation on the weekly scale.
The momentum oscillator MACD is very well in sell mode on the weekly chart.
(The author is derivative analyst- Equity Research, Anand Rathi Share and Stock Brokers)Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.